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Economic growth must be #1 priority for next ANC leadership - Gigaba

Dec 16 2017 13:48

Lameez Omarjee

Finance Minister Malusi Gigaba did not underplay the crisis in the country when he delivered his first mini budget speech. (Photo: Jaco Marais, Netwerk24)

Gigaba was delivering an address at the Progressive Business Forum breakfast at the ANC’s 54th national conference, which kicked off on Saturday.

“The most important task of the incoming ANC leadership is the economy. All other things are dependent on the economy growing faster, becoming inclusive and ensuring we create employment and prosperity for the whole country,” he explained.

“At this defining moment, the most important task for the ANC as a governing party is to lead the country to achieve inclusive growth through radical economic transformation as quickly as possible.”

Gigaba noted that progress has been made since 1994, but the country still faces extreme income inequality, deep poverty and unemployment affecting the youth specifically.

Some of these challenges have been mitigated through the introduction of the social wage bill.

“The social wage bill can be as good as it is a trap if jobs are not created for people to be gainfully employed and be freed from the reliance on the State,” said Gigaba.

“In this regard, the call for radical economic transformation is relevant, it is a stepping stone towards inclusive growth. There can be no other way forward for the country.”

Gigaba explained that growth without economic transformation is unjust and that in turn transformation without growth is also self-defeating.

Radical economic transformation should be achieved by ensuring ownership, management and the worker profile at all levels reflect the racial composition of the broader society. Secondly it can be achieved by transforming the sectoral composition of the economy to be one built on a skilled middle class rather than one which is capital intensive and built on mineral resources.